Naira value drops again, as BDCs warn that speculations may push rate to N800/$1

The poor run of Nigeria’s currency, Naira, continued on Monday as it again lost 0.31 per cent or N1.31 against the United States Dollar at the first trading day at the Investors and Exporters (I&E) window.

Data from FMDQ Securities Exchange showed that at the forex market it closed at N420.33/$1 compared with the preceding session’s N419.02/$1.

The drop in the value of the Naira happened as a result of a lack of FX supply to dealers during trading, which totaled $75.25 million.

Similarly, the Naira also suffered depreciation to the British Pound Sterling by N4.20 to trade at N522.84/£1 compared to the previously traded rate of N518.64/£1.

Also the Euro increased in value to the Naira by N3.72 to sell at N442.95/€1 in contrast to last Friday’s exchange rate of N439.23/€1.

At the the Peer-2-Peer (P2P) segment, the Naira lost N2 or 0.32 per cent against the dollar to close at N618/$1 in comparison to N616/$1 on Friday last week.

Read also: Naira records slight recovery at official market, sells at N419.02/$1

Meanwhile, the President, Association of Bureaux de Change Operators of Nigeria, Alhaji Aminu Gwadabe has again called on the Central Bank of Nigeria (CBN) to reconsider its decision to stop the sale of dollars to its operators.

According to him, Nigerians are losing confidence in the value of the naira as nobody wants to keep Naira because of depreciation.

“We are seeing speculation; we are seeing hoarding. You don’t need money now, but you are scared that if you don’t buy now, in the next six months, it may be N800. So, this is the issue.”

“The overwhelming regulation and the overwhelming criminalisation are not the best. Out of 6,000 players, maybe you have 100 that are involved in one infraction or the other and you say all of them are criminals. It is important CBN reconsiders it stands,” he said.

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